Chancellor George Osborne has announced an overhaul of stamp duty in his Autumn Statement.
The change to stamp duty means that the old system where the tax would go up in price brackets has been replaced by a graduated rate similar to income tax effective today (4 November).
According to the new rules homeowners will pay no tax on properties under £125,000, two per cent on the total up to up to £250,000, five per cent on the portion up to £925,000, 10 per cent up to £1.5 million and 12 per cent on homes over this figure.
Osborne said that 98 per cent of homebuyers would benefit from a cut in stamp duty, while overall taxpayers will save nearly £800 million each year.
Mark Hayward, managing director of National Association of Estate Agents, welcomed the new measures to calculate stamp duty tax, highlighting the savings that will be felt by homebuyers.
He said: “The changes will help many first time buyers to get on the property ladder. In addition, we also expect the changes to help balance the seesaw of supply and demand in the current market.”
Hayward explained that the housing market will benefit from being affordable and accessible and will “allow greater movement for house buyers and sellers in the UK property market”.